'Cash from art': Bank of Ireland art sale shows investors the way forward

'Cash from art': Bank of Ireland art sale shows investors the way forward

Here's a look at how the world's top mainstream investment firms are embracing alternative assets

It was a matter of hours after the Irish government announced the biggest spending cuts in the country's history. But in Dublin on Wednesday night (November 24) a sale of Irish art raised $2m before a packed auction house.

The connection? The sold artworks belonged to the Bank of Ireland, which had decided tosell itscollection amidst criticism over its recent multi-billion dollar bail-out. The profits of the sale, however,are to be donated to local charities and not used to cover the bank's debts, as many critics feared.

More than 150 paintings and sculptures were auctioned off with the highest price of the night going to "Clouds at Sunset," a 1911 landscape of Killary Harbor in western Ireland by artist Paul Henry. It eventually sold for $88,000, along with 99% of the lots.

After a turbulent few years and an unstable financial climate, many banks have been 'parking their cash in art.' But as several other banks in Ireland move towards nationalisation and look to sell of their own collections, it is collectors who stand to profit.

Art is becoming an increasingly popular alternative assets for investors, and the record-breaking results of many auctions this year show that this trend shows no sign of slowing down.